Xerox Finds Services Segment Deliver More

Xerox reports its services segment has delivered a substantial increase in its margins in its financial report for the second quarter of 2016 (2Q2016).

According to the report, the entire revenue of Xerox in 2Q2016 was US$4.4 billion, down 4% compared to the same period of last year. The operating margin was 9.3%, an increase of 0.8% year-on-year (YOY).

The total revenue of the services business was US$2.5 billion, down 2% or 1% in constant currency. The margin of this segment was 9.6%, increasing 2.4% YOY. Xerox believes the increase was driven by cost and productivity improvements, including benefits from the company’s strategic transformation program.

Likewise, the total revenue of the document technology business was US$1.8billion, down 7% or 6 % in the constant currency. The margin of this segment was 12.6%, increasing 0.1% YOY.

Ursula Burns, Chairman and Chief Executive Officer of Xerox, commented, “Our Services segment delivered substantial margin expansion and continued revenue growth in Document Outsourcing. Document Technology revenue declines moderated and margin improved driven by cost and productivity initiatives.”

Apart from that, Xerox has experienced a continuous increment in its three-year strategic transformation program, and the total cost saved by the company has reached $2.4 billion.

In addition to the financial report, Xerox has also restated the earnings guidance of the whole year. Xerox used to separate its company into two—Conduent Incorporated and the Xerox Corporation, with the split completed at the end of 2016.

Click here for the full report.

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